Volkswagen Opens AI Lab as Carmakers Embrace Artificial Intelligence

Volkswagen is reportedly in discussion with technology companies to launch an artificial intelligence partnership.

The German carmaker would work with these tech groups to create digital prototypes for products and features that use AI, Reuters reported Wednesday (Jan. 31).

To help this effort, Volkswagen has opened an “artificial intelligence lab” to foster new product ideas, such as collaborations with companies in the technology sector across China, North America and Europe, the company said in a statement, per the report.

The goal is to develop early-stage prototypes in areas such as voice recognition, AI-optimized charging cycles, and predictive maintenance services, according to the report.

“Exploratory talks are already underway with international tech companies on initial projects,” Volkswagen said, per the report. The company offered no further details.

While the lab will not be based inside Volkswagen’s software unit, Cariad, or a specific brand, the company said prototypes that show potential will be passed onto its brands, according to the report.

Volkswagen’s AI plans are happening as several companies in the automotive sector are embracing the technology.

“Once integrated and scaled, AI is poised to have a profound impact on the mobility industry,” Steven Silver, managing director of automotive, transportation and mobility for Publicis Sapient and Publicis Groupe, told PYMNTS earlier this week. “However, business leaders must be willing to embrace AI experimentation. It’s important to capture the opportunity now, rather than wait for perfection and mass adoption.”

Silver said he sees two areas where AI can elevate the customer experience when used properly.

The first is via predictive maintenance and in-vehicle personalization. For example, AI in a connected vehicle could sense and respond to streaming data, helping drivers and manufacturers deal with problems before they arise.

The second is in simplifying shopping for a new car. AI can give car makers and dealers market behavior data based on buying patterns, making the process of buying a car two-sided.

Volkswagen’s AI lab is not the company’s first go-round with the technology. Earlier this month, the company announced it had integrated OpenAI’s ChatGPT, into its IDA voice assistant.